$200 trillion in global debt at risk if trust falters: OECD
The Organisation for Economic Co-operation and Development (OECD) has warned almost $200 trillion in public and private debt could be the catalyst for another global economic crisis if trust in government and financial institutions deteriorates.
In a report overseen by former Australian Securities and Investments Commission chief Greg Medcraft, the OECD also said the destruction of trust following the global financial crisis (GFC) had contributed to the rise of crypto-currencies, which themselves were exacerbating the globe’s economic risks.
The OECD is forecasting global economic growth to edge down to 3.3 per cent over 2019, partly in response to the US-China trade war and the fallout of the Brexit debate in Britain and Europe. It expects Australia to grow at 2.7 per cent.
In its annual report into key issues facing businesses and the financial sector, the Paris-based think-tank said governments had invested huge amounts of political capital and public finances into rebuilding the trust destroyed across the financial sector by the GFC in 2008.
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